Ultramar picks up some Suncor assets: regulator

CALGARY, Alberta Aug 27 (Reuters) - Valero Energy Corp's (VLO.N) Ultramar unit will acquire and run Suncor Energy Inc's (SU.TO) terminal storage and gasoline distribution business in southern Ontario, Canada's Competition Bureau said on Thursday.

Ultramar, which operates a 265,000 barrel per day refinery in Levis, Quebec, was approved as the buyer of the assets by the bureau. Divesting the operations was one of the conditions placed on Suncor when the bureau approved its C$22.5 billion ($20.6 billion) acquisition of Petro-Canada last month.

To get the merger approved Suncor was required to divest 104 retail gasoline stations in southern Ontario and lease out storage and distribution network capacity in the Toronto area for 10 years.

The bureau said the agreement will let Ultramar expand its presence in Toronto's wholesale market and supply independent gasoline retailers in southern Ontario.

"We believe that this agreement will be an effective remedy to the substantial lessening of competition that the bureau concluded was likely in the market for wholesale gasoline in southern Ontario and (Toronto)" Melanie Aitken, commissioner of competition, said in a statement.

Brad Bellows, a spokesman for Suncor, said the terms of the agreement are not being released. Ultramar could be immediately reached for comment.

($1=$1.09 Canadian) (Reporting by Scott Haggett; editing by Rob Wilson)